How do democratically elected political leaders, their well paid bureaucrats, and astute citizens allow for the largest ever bankruptcy of a U.S. city? On July 18, 2013 Detroit declared what was already understood that they did not have enough money to pay for their commitments and obligations. The Mayor and the city Council knew that Detroit was losing jobs and people. But did they do anything to change how they operated the city? The people that the Mayor hired had to know that Detroit’s tax base had eroded over decades and that it was not going to be possible to continue spending money as they were. The people who did not leave Detroit, did not hold the government accountable to find a solution. The bondholders and business elite stood aside and did not demand that changes take place. This is the most startling example of a clusterf*ck. Detroit has been on a decline for decades. They did not lose half of their population (1.5 million to 700 hundred thousand) in the span of a few years according to The Economist. This is what has happened in Europe with is Euro crisis, with nation states not recognizing the limits of their […]